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Sberbank releases results for 1H 2013

Sberbank recently released its interim condensed consolidated IFRS financial statements for the six month period ending June 30.

The company saw a net profit of $5.42 billion compared with $5.45 billion for the same period in 2012. There was a 25.5 percent increase in interest income for the first half of 2013, reaching $12.62 billion compared with $10.64 billion in the first half of 2012. There was also a 16.4 percent increase year-on-year on the group's net interest income, excluding the effect of the DenizBank acquisition in 3Q 2012.

Sberbank saw a decrease in its net interest margin for the first half of 2013 by 20 basis points to 5.8 percent. The net fee and commission income increased by 24.5 percent during the period to $3.03 billion compared with $2.43 billion the previous year.

Operating income for the company before provision for loan impairment was at $16.19 billion, a 22 percent increase compared with $13.0 billion last year. This was mostly driven by growth of net interest income, net fee and commission income. It was also supported by the DenizBank acquisition. Excluding the acquisition, there was a 12.9 percent increase year-on-year.

There was also a 19 percent increase in operating expenses, slower than operating income. This resulted in an 45.8 percent improvement in cost to income ratio compared with 47 percent for the previous year. Net provision charge for loan impairment came to $1.95 billion, translating to a cost of risk of 110 basis points.

The group had total assets of $501.71 billion as of June 30, marking a 6.9 percent increase over the same period the year before. The main driver of growth came from an increase in loans to customers.

Loans and advances to customers increased by six percent during the period, growing from $326.32 billion in 2012 to $346 billion in 1H 2013. The group saw its proportion of non-performing loans in total gross loans remain stable at 3.2 percent.